HP breakup is on tech world’s 2013 agenda 6 Dec 2012 The revered tech group represents the essence of Silicon Valley. But its era as an everything-to-everyone tech conglomerate is over. CEO Meg Whitman and the board won’t stick around for a five-year turnaround. Breaking up HP would be quicker, and could almost double its value.
Baseball is due to face a financial curveball 20 Nov 2012 Rupert Murdoch is buying into the New York Yankees cable network at a Ruthian EBITDA multiple. Player salaries and ticket prices have surged at triple the rate of inflation over 20 years while franchise values are at 42 times operating income. These diamonds aren’t forever.
If Apple becomes Microsoft, investors should cheer 19 Nov 2012 At least, that is, for their wallets. Middle age for tech stocks can hurt as growth shareholders lose interest and value-oriented owners await stability. But Apple has already made the transition. Even if its next decade echoes Microsoft’s last, the company is worth over $1 trln.
New U.S. stress test needed: higher interest rates 4 Oct 2012 Don’t fight the Fed, the saying goes. The central bank is promising ultra-low rates into 2015. Yet the buildup of low-yielding debt on financial firms’ balance sheets means they may suffer badly if rates jump. The Fed aside, prudent bosses need to avoid fights with history, too.